"Makes No Bloody Sense": Hollywood Scrutinizes Trump's Tariff Proposal on International Films
- *
Incomprehensible Actions: Baffling Actions Unravel Mystery Surrounding Event - "US film industry finds Trump's tariff statement perplexing"
"If the stunt is Tom Cruise scaling the Parisian Eiffel Tower replica in Vegas, what are we supposed to do? Shoot in a freakin' stand-in? That's just ludicrous," says Handel.
On Sunday, Donny boy declared he's ordered the US Department of Commerce to instate a 100% tariff on all films made outside the homeland, voicing his dismay through social media. "Let's make our silver screens Hollywood again, not some global circus," he wrote.
This announcement has left the film industry in a state of chaos - stock prices plummeted instantly, and it's unclear whether the proposal extends to TV series as well. Moreover, whether such a hierarchy can even be executed remains questionable.
Handel reiterates that filmmaking belongs to the intellectual property realm. "You purchase a movie ticket, but you don't pay for the film itself like you would for a piece of clothing or a vehicle, which can be taxed upon entry to the US," he explains.
Even if a system for collecting tariffs on foreign-made movies could be devised, Handel warns that such taxes would do more harm than good to the US industry. In his opinion, the end result would be "slashed production, skyrocketing film prices, and a decrease in the number of films available to cinemas and streaming platforms."
As of Monday, official responses from film studios and industry bodies were yet to materialize. Trump's plan has given Hollywood sleepless nights, although the general consensus within the industry is that it's experiencing a rough patch.
The film industry plays a crucial role in the United States economy, employing over 2.3 million people and generating a staggering $279 billion in 2022, according to the Motion Picture Association. Exports far outpaced imports. However, industry insiders report that 2023 was marked by strikes from screenwriters, actors, and more, plus a readjustment to consumer behavior due to COVID-19.
Data from ProdPro's January report suggests that the US will remain a major player in film production spending, allotting $14.5 billion in 2024. Despite this, the figure represents a 26% dip since 2022. A survey of film studio chiefs also points to the top five preferred filming locations for 2025 and 2026 as being outside the US, owing to tax incentives.
One Hollywood heavyweight agreed with Trump's ambition to boost domestic production but argued that the industry needs tax breaks, not protectionist tariffs, to thrive. "Smothering the rest of the film business ain't the way."
Breaking down the Potential Fallout:
- Rising Consumer Costs: A 100% tariff on international films would drive up their import costs, likely leading to pricier movie tickets, crimping demand, and throttling theater revenues.
- Limited Foreign Film Access: The tariff could diminish the accessibility of foreign films in the US, as distributors would find it financially unfeasible to bring them over. This could squeeze cultural exchange and limit the diversity of cinematic offerings.
- Production Impacts: The tariff is designed to boost hometown filmmaking, but it may not tackle the root causes of dwindling US production, such as subsidies offered by foreign nations and favorable production environments.
- Complexity of the International Film Ecosystem: The global film industry is a highly networked web, with many movies engendered through international collaborations. A 100% tariff would muddle these partnerships, potentially luring more production overseas.
- Economic and Political Implications: This extreme measure could trigger retaliatory economic countermoves from other countries, affecting various sectors of the US economy beyond the film industry.
- The US film industry, which plays a crucial role in the economy, employing over 2.3 million people and generating a staggering $279 billion in 2022, reacted skeptically to Trump's tariff proposal on international films.
- Even if a system for collecting tariffs on foreign-made movies could be devised, studies warn that such taxes would do more harm than good to the US industry, potentially leading to slashed production, skyrocketing film prices, and a decrease in the number of films available to cinemas and streaming platforms.
- A 100% tariff on international films would drive up their import costs, likely leading to pricier movie tickets, crimping demand, and throttling theater revenues.
- The global film industry is a highly networked web, with many movies engendered through international collaborations. A 100% tariff would muddle these partnerships, potentially luring more production overseas.
